b'INSURANCE REGULATORY|US/NAICMultistate Rate Reviews for Long-Term Care Insurance Aim to Reduce Cross-State SubsidiesAt the NAICs Fall National Meeting, the Long-TermThe Review Process Care Insurance (EX) Task Force (LTCI Task Force) completed a project to adopt a multistate actuarialThe review process governed by the Framework (the rate review framework for considering increases inMSA Review) will begin when an insurer long-term care (LTC) insurance rates (theexpresses interest in a review being conducted Framework). The LTCI Task Force had previouslyunder the Framework, either via the System for been tasked with developing a consistent nationalElectronic Rate and Form Filing (SERFF) or approach for reviewing current LTC insurance ratesthrough supporting NAIC or Interstate Insurance that would result in actuarially appropriate increasesProduct Regulation Commission (Compact) staff. being granted by the states in a timely manner andThe eligibility of the insurers rate proposal will be eliminate cross-rate state subsidization, wherereviewed and determined by a team of LTCI Task policyholders in one state in which rate increasesForce staff who have been appointed to oversee have been approved are effectively subsidizingsuch reviews (the MSA Team). The eligibility policyholders in another state where rate increasescriteria for rate proposals are as follows:have not been approved or where approved rateMust relate to an in-force LTC insurance product increases are insufficient. The proposed Framework(individual or group);is the result of the LTCI Task Forces efforts to develop such an approach. Must be seeking a rate increase in at least 20 states and the proposal must impact at least The Framework was developed out of a pilot5,000 policyholders nationwide;program conducted by a Task Force rate review team and aims to create a voluntary and efficientMust include any stand-alone LTC insurance multistate actuarial review process. The Task Forceproducts which have been approved by state intends for the Framework to create a process thatinsurance regulators (not by the Compact); andwill encourage insurers to submit their LTCIFor any Compact-approved products that meet products for multistate review and provide statecertain criteria, the Compact office will provide insurance regulators with confidence in suchfirst-level advisory review subject to the input review, so that regulators will utilize theand quality review of the MSA Team.recommendations resulting from such review whenThe review of the insurers rate proposal will be conducting their own state-level reviews of LTCavailable to state insurance regulators in the insurance rate filings. following jurisdictions:100|Global Insurance Industry Year in Review 2021'